Hello, and thank you for your advice in advance. I have a luxury nail salon and we have been with square since we opened. This year to date we have taken 304k in credit card payments and have paid almost 8000 in square fees. I am thinking if I can lower this and have been looking at interchange plus. The credit cards used are as folllws 65.17% Visa 16.70% Mastercard 16.39% Amex 1.74% Discover 43% of the transactions are debit Almost 50% are tapped if that makes a difference. We are above 150 per ticket. Any advise who to go to and what to look and maybe some recommendations so we can save some money here ? Thank you guys again for your recommendations.
Payments professional of 15 years here. You are correct that you can likely lower your fees on an interchange plus model. However, the breakdown of the card brands isn’t enough data and Square won’t provide you with what you need.
Which features of Square you actually using? Just the payment device? The full POS? Any other apps such as employee clock in, payroll, etc?
Redde payments has been for us. Highly recommended and they should be able to offer you a custom quote.
First of all, get away from Square no matter what you do if pricing is important to you.
At your revenue level and average ticket, you should be able to find a processor that is cheaper than square fairly easily.
While Interchange plus is usually a cheaper pricing method, you have to realize that it completely depends on how many basis points you are priced at. For example, if you are at Interchange and 50 basis points vs Interchange and 5 basis points there is a .45% difference.
Remember, the job of the merchant processing sales representative is to sign your account and leave as much profit as possible for themselves.
If you want to do the research you can read this, it is quite long but very informational.
https://www.synapsepayments.com/how-does-payment-processing-work/
Our company is designed around a flat fee instead of a percentage. You may want to give us a look if you are shopping around. I believe we are the cheapest there is.
One more thing, you are probably not going to want to be on a Cash Discount model where you pass the fee to your customer. You may be pushed to do so because sales reps make a lot more money if you are on cash discount but if you are very concerned about tips then it wouldn’t be worth pursuing unless you plan to raise your employee wages to compensate for the lost tip revenue.